Govt introduces expectations for new data centre developments

The federal government has introduced expectations of data centre and AI infrastructure developers, designed to "make it easier to invest in Australia".

The five expectations are prioritising Australia’s national interest; supporting Australia’s energy transition; using water sustainably and responsibly; investing in Australian skills and jobs; and strengthening research, innovation and local capability.

The government will work with the states and territories and market participants to implement the expectations, particularly through the Energy and Climate Change Ministerial Council. 

The Albanese Government expects data centres and AI infrastructure operators to underwrite new renewable power supply, pay their full share of new grid connectivity so costs are not passed to consumers or businesses and support Australia’s energy transition through demand flexibility mechanisms. 

The Government also expects hyperscalers to make compute available to Australian start-ups seeking to create Australian AI, and partner with the government's innovation ecosystem.  

Through regulatory processes, the Australian Government will prioritise proposals most closely aligned with these expectations, and the overarching national expectations will work alongside existing laws and help guide local decisions in each state and territory.  

The expectations fall under the National AI Plan introduced in December of 2025.

Minister for Industry and Innovation and Minister for Science Tim Ayres said that Australia has a significant number of national challenges to solve – and AI, data centre investment and advanced industrial and technological capability can help the country get there.  

“Securing this infrastructure onshore strengthens our security, supports our startups and researchers and ensures Australian data benefits Australians – not offshore jurisdictions," he said. 

“Australia is open for business – but the kind of business that puts Australia’s national interest first."

The Tech Council of Australia (TCA), which describes itself as the peak body for the nation’s tech sector, released a statement in support of the expectations, stating that the commitment to provide compute capacity for startups and researchers on favourable terms is a "significant signal" for the broader tech sector.

"It aligns with the goals of Ambitious Australia, the final report of the Strategic Examination of Research and Development released this month, which identified access to capital and infrastructure as critical to keeping Australian technology companies growing at home," the body's statement continued.

"Australia has a long-term opportunity in the application layer of AI. Improved access to compute will help turn the current wave of data centre investment into sustained local innovation, supporting the development of tech solutions for Australians."